Real Estate Market Trends in Bahrain

Lets look at the Real Estate Sales Rental Trends in Bahrain

Market Overview

According to the most recent forecasts, the Bahrain luxury residential market is expected to expand by 5 percent every year for the next decade.

The ongoing effects of COVID-19 continue to significantly impact the real estate industry. However, there has also been an increase in sales and rentals during these challenging times – as consumers and homeowners are still able to afford to buy properties at lower prices, and renters are encouraged to stay where they live, thanks to reduced rents. Rents have dropped even further across the board than sale prices, making buying a new property less expensive than renting, especially when you include the cost of utilities.

As Bahrain continues to experience rising commercial development, there has been an increase in the number of new luxury residential developments being launched each year.

Real Estate Market Trends in Bahrain: How COVID-19 has impacted this market and its growth?

Due to the coronaviruses’ impact on travel and tourism, the global economy has been experiencing unprecedented uncertainties. With the world grappling with the economic ramifications of the virus, there was a significant decrease in the numbers of people traveling abroad, which resulted in less demand for property. Coupled with the fact that most countries were under lockdown, this led the market to experience a sharp downturn.

Despite the negative impacts of the coronavirus pandemic, there are signs of recovery. In particular, the middle east region has been showing a lot of resiliency during the pandemic.

Real Estate Market Trends in Bahrain: What do data and statistics say about Bahrain Real Estate Market?

In terms of capital values, high-end villas face the steepest drop with a year-on-year price drop of 8.3 percent while mid-end villas decreased the least by 0.5 percent for the same period.

Thanks to the ease with which business can be conducted in Bahrain, the real estate market will continue to present opportunities for investors across the globe as the government offers 100% foreign ownership to investors and expatriates in the Kingdom.

Further we move ahead with Real Estate Market Trends in Bahrain.With pandemic restrictions lifted, CBRE takes a look at Bahrain’s real estate performance in the first half of the year.

BAHRAIN OFFICE

“We have recorded occupier demand for greater incentives in acquiring new workspace, such as extended rent-free periods, although leading landmark properties are maintaining headline rents overall,” said Heather Longden, Director – Advisory & Transactions, at CBRE in Bahrain.

Longden’s comment comes after it was revealed that visitation to workplaces exceeded pre-pandemic baseline, climbing to 4.8% in March. Average rental rates across Grade A and B space remained stable in Q1 2022, as compared with Q4 2021, at BD5.25 per sqm per month, although transactional activity in the sector has been muted through the start of the year, reveals CBRE.

BAHRAIN RESIDENTIAL

CBRE revealed that residential in Q1 2022 apartment sales rates increased by 2.3% compared to 2021, reflecting the first positive rate variation in recent years.

Average quoted apartment sales rates sat at BD878 per square metre for two-bedroom mid-to-high end properties across Bahrain, compared to BD831 in 2021.

“It should be noted that recently launched prime properties, including within Diyar Al Muharraq, have driven up average quoted sales rates. Average mid-to-high end apartment rental prices in Bahrain continued to decline between Q4 and Q1, falling by up to 12% QoQ for two-bedroom apartments, with the lowest change seen in three-bedroom apartments configurations. There continues to be growth in supply of apartment product across the Kingdom, and with subdued population growth it is anticipated that there will be further downward pressure on rents,” CBRE notes.

BAHRAIN RETAIL

Looking at retail, CBRE reveals that Bahrain’s retail and recreation sector visitation witnessed a dip at the start of Q1 2022 compared to Q4 2021. “Branded retail occupiers, particularly in the fast food and convenience segments, are continuing to pursue expansion strategies. Drive-thru concepts remain popular to meet the expectations of customers. Successful neighbourhood and community developments are demonstrating the case for a balanced tenant mix that offers retail, F&B and community services,” says the consultant.

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